Streamlined Accounts Payable: Cogneesol Increased On-time Payments up to 75%, and $1.3Mn Savings

The Client:

A US-based accounts payable automation company with customers across industries including hospitality, accounting firms, construction companies, country clubs, etc.

Scope of Work

Complete support with accounts payable functions.

The Client

Process Bottlenecks

Fragmented procurement processes across the US delayed vendor payments. Duplicate payments were another issue, with around 25-30% of payments falling under the ‘duplicates’ category.

This resulted in about $1.3Mn being blocked every month subject to return validations by vendors, thereby severely affecting the working capital position and decision-making ability of the business.

Cogneesol’s Optimization Solution

We leveraged our accounts payable domain experts to embark on step-by-step due diligence and diagnostic process. The team, with help from the client’s staff, first consolidated and standardized the payables operations across all the US locations from where invoices come in. This led to significant process redesign, supported by technology changes both at the client end and at our end in Cogneesol. The team listed down further corrections in the invoice processing procedure that led to the saving of document downloading time.

The centralized and standardized operations eliminated process redundancies and increased productivity leading to significant improvements in turnaround time in the areas of invoice exceptions, payments, and vendor management.

Thanks to Cogneesol’s accounting experts, we do not have any more payables backlogs. Plus, all our payments are on time, our vendors are happy. The team is efficient and they are domain experts who bring changes without wasting time and resources!

Impact Delivered

Changes in the operating model led to streamlining of accounts payable function with real-time invoice processing and improved vendor management.

On-time payment of invoices in the US increased to 75 percent. Cost savings of 25% plus due to elimination of duplicate invoices and the funds of around $1.3Mn being channelized in the required direction.

Client Testimonials

It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.

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